Seeking Alpha

IHS: Reversing oil export ban will boost U.S. economy

  • The energy research group IHS has released a report stating the benefits of U.S. oil exports. Advantages include an added domestic investment of $750 billion, fuel prices lowered by 8 cents a gallon, and an added 394,000 jobs.
  • Congress enacted a ban on exports after price shocks from the 1973 Arab oil embargo.
  • With the possibility of Russia cutting its natural gas and crude oil supply to Europe, there is a greater focus on the potential of U.S. energy.
  • ETFs: USO, OIL, UCO, SCO, DTO, BNO, DBO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, OLEM
Comments (6)
  • P. Dennis
    , contributor
    Comments (371) | Send Message
     
    For those politically knowledgeable folks out there, is it possible to enact a lifting of the export ban in an election year?
    29 May, 09:55 AM Reply Like
  • gespecht
    , contributor
    Comments (15) | Send Message
     
    How is selling our oil to Europe going to help us? It will benefit the oil companies and keep our fuel prices high to compete with the $6+/gallon gas in Europe. Anyone that believes this story has probably been hiding under a rock for the last ten years. We will feel the pain at the pump again. We are sending all the domestic oil we can to Houston already to be refined and sent abroad. The author of this statement is nothing but a bold liar. I don't believe there are any readers here at Seekingalpha simple enough to swallow this BS. Get me an application so I can sign up for one of the new great jobs that are going to be created! I can't wait to spend the money I will save when the gas prices go down $.08.
    29 May, 10:47 AM Reply Like
  • gespecht
    , contributor
    Comments (15) | Send Message
     
    Lifting Export Restrictions on US Crude Oil Would Lower Gasoline Prices and Reduce US Petroleum Imports While Supporting Up to 964,000 Additional Jobs.

     

    This is the quote from the report. How do you reduce imports by selling our domestic oil? The good news is the new jobs count jumped to 964,000!!!! Congressmen get your hands out, cause there is going to be plenty of Oil Lobby money spent to get you to vote on this Sweet Deal.
    29 May, 10:56 AM Reply Like
  • Philip Marlowe
    , contributor
    Comments (917) | Send Message
     
    It is an utter lie that removing the ban would reduce the price of gasoline in the US. Just by saying this the energy research group IHS loses all credibility.

     

    Nevertheless, I am in favor of removing the ban. Sometimes you just have to trust the free markets. The price of gasoline will go up slightly but our exports and foreign investment will improve.
    29 May, 11:08 AM Reply Like
  • gespecht
    , contributor
    Comments (15) | Send Message
     
    I always appreciate your well thought out comments. In a former life, I worked for some of the oil and power companies like Skelly, Getty, Foster Wheeler, Combustion Engineer, Brown & Root and others. Nowdays I just invest in things. The people I know are spending so much money to drill horizontal wells and paying such high lease prices that they will almost kill to sell their oil to the highest bidder to recover their investment. I feel this warrants some governing to insure all our domestic resources don't find their way overseas to reap profits not found at home. I also feel that if the Keystone project goes through, that oil will reach Houston to be shipped overseas and the US will be bypassed instead of getting any benefits of the more affordable Canadian oil. I don't believe we have any restrictions on refined products and they have been flowing out of the country without restraint. It seems to me that the same scenario will play out with crude oil if the government turns them loose. The oil pipeline from Cushing to Houston was reversed so our oil from the midwest could make it to Houston, be refined and exported to support the WTI prices. I live in the Midwest and that's just my observations here at home.
    29 May, 07:25 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (917) | Send Message
     
    Thanks. I appreciate your comment too.
    29 May, 08:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|